Evercore Investment Banking Pitch Book
Financial Analysis
Net Asset Value Analysis - Assumptions
■ The following represents the assumptions utilized by Evercore in its net asset value analysis (the "NAV
Assumptions")
■ Projections of proved, probable and possible production, operating costs, and capital expenditures based on the
Reserve Report rolled forward to October 1, 2012
Volumes and risking for specific Ultra-Deep prospects and discoveries (as per MMR estimates)
Geologic and mechanical risking was estimated by Evercore and reviewed by MMR's technical team with
Evercore
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Utilized an expected value analysis based on the assumed geologic and mechanical risking
Each well has a 200 Bcfe EUR
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Gross well costs of $243.0 million per well (as per MMR estimates) comprised of:
$100.0 million and 1 year to drill
$100.0 million and 6 months to complete
Developed using a continuous four rig program through 2014, going to a six rig program in 2015 and finally an
eight rig program by 2016, held constant thereafter
Lineham Creek Yegua wells begin drilling in January 2014 with an incremental non-operated drilling rig
Production for each well of 70 MMcfed held flat for six years, then exponential decline (as per MMR estimates)
Condensate is 5% of well stream (8.8 bb1/MMcf)
Confidential
$43.0 million to equip and tie-in
First production after 18 months
EVERCORE PARTNERS
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